Life and Career Skills

Ah! Everybody has a different perception about life, happiness and peace of mind. I suppose it depends on your frame of reference. Here is a lovely story that i found that makes the point about perspective very nicely. Let me know your thoughts.

A boat  docked  in a tiny Mexican village.

An American tourist complimented the Mexican fisherman on the quality of his fish and asked how long it took to catch them.

“Not very long,” answered the Mexican.

“But then, why didn’t you stay out longer and catch more?” asked the American.

The Mexican explained that his small catch was sufficient to meet his needs

and those of his family...

The American asked, “But what do you do with the rest of your time?”

“I sleep late, fish a little, play with my children, and take a siesta with my wife. In the evenings  I go into the village to see my friends , have a chat, catch up on what’s happening around, a sing a few songs ….I have a full life.”

The American interrupted:

“I have an MBA from Harvard and I can help you. You should start fishing longer every day.

You can sell the extra fish you catch.

With the extra revenue, you can buy a bigger boat.

With the extra money the larger boat will bring , you can by a second one and third one so on until you have an entire fleet of trawlers.

Instead of selling your fish to a middleman, you can negotiate directly with the processing plants and maybe even open your own plants.

You can then leave this little village and move to Mexico City,

Los Angeles, or even us York City. !

From there  you can direct your huge enterprise.”

“How long would that take? “asked the Mexican.

“Twenty, perhaps twenty-five years, “ replied the American.

“And after that  ?”

“Afterwards ?   That’s when it really gets interesting,” answered the American laughing.

“When your business gets really big, you can start selling stocks  and make millions.!”

“Millions ?  Really ?  And after that? “

“After that you will be able to retire, live in a tiny village near the coast, sleep late, play with your children, catch a few fish, take a siesta , and spend the evenings with your friends.”

So many money resolutions are ho-hum (pay off debt! make a budget! floss!). Here, a few fresh steps that I use to turn your financial life around this year.

1. Spend time on your money. It's the most overlooked equation in personal finance: Time begets money. Invest an extra hour per week on your money this year, and you will be amazed at the returns.
2. Learn daily. Spend five minutes a day boosting your financial IQ. In one year-365 X 5 = 1,825 minutes-you will have racked up 30 hours of money smarts.
3. Snowball your goals. It's tempting to start 2010 by aiming for a big win. Instead, tackle small money goals now, and build momentum toward one or two big ones later in the year.　
4. Live for tomorrow. Researchers believe the brain is hardwired to value present gains-causing many people to shortchange their own futures. Aim to save 20% of your income this year, 1% at a time.
5. Demand money that reflects your worth. Boost your earning power. Help the cause. Charge more, negotiate harder, up your rates. At the very least, ASK.

After helping a few friends with their 2010 resolutions, I realised thatwhat I take for granted as it relates to money management is not that obvious

for most people. Here are some reminders on how to manage your money.

1. Pay yourself first. Try to put away at least 10% of your pre-tax income into a savings account.

2. Spend less than you earn. While this seems obvious, most people are notorious for doing just the opposite. Stop spending and start saving.

3. Pay your bills on time. Avoid needless late fees and know how much money you actually have.

4. Avoid debt. Student loans and mortgages can be "good debt", but even then, make paying them off a priority.

5. Set a budget and live by it. Use a computer program or just a paper and pencil. Whatever works.

6. Set concrete goals. Know when you want to buy a new home, when you want to retire, and how much you are expecting each to cost you.

7. Have an emergency fund. Have at least three months' income in a high-yield savings account that can be easily accessed.

While I love the optimism of New Year’s Resolutions, unfortunately, the enthusiasm and hope often fades within months, and our efforts at self improvement come to a whimpering end. New Year’s Resolutions usually fail because of a combination of some of these reasons:

1. We try to do too many resolutions at once, and that spreads our focus and energies too thin. It’s much less effective to do many habits at once (read more).
2. We only have a certain amount of enthusiasm and motivation, and it runs out because we try to do too much, too soon. We spend all that energy in the beginning and then run out of steam.
3. Resolutions are often vague — I’m going to exercise! — but don’t contain a concrete action plan and don’t use proven habit techniques. That’s a recipe for failure.
4. We try to do really tough habits right away, which means it’s difficult and we become overwhelmed or intimidated by the difficulty and quit.
5. We try to be “disciplined” and do very unpleasant habits, but our nature won’t allow that to last for long. If we really don’t want to do something, we won’t be able to force ourselves to do it for long.
6. Life gets in the way. Things come up unexpectedly that get in the way of us sticking with a habit.

What Can You Do Differently in 2010?

1. Focus on one habit change at a time, so your focus and energies are not spread thinly.
2. Implement the habit changes gradually, so you don’t run out of steam.
3. Start out really, really easily, so it is not intimidating.
4. Focus on enjoyable activities, so you don’t need “discipline”.

If you stick with the method, you’ll do much better than you’ve done in the past with New Year’s Resolutions. You’ll focus on creating long-lasting habits rather than trying to reach a short-term goal that fails. You’ll maintain your enthusiasm for longer and not become overwhelmed by the difficulty of change. You’ll have habits that will change your life, and that’s no small feat.